Seplat Energy Plc has announced a refreshed dividend strategy that guarantees shareholders at least $120 million (₦179 billion) annually, with a cumulative target of $1 billion by 2030. The policy is backed by the company’s acquisition of Mobil Producing Nigeria Unlimited, now renamed Seplat Energy Producing Nigeria Unlimited (SEPNU), and is aimed at strengthening long-term returns for investors.
At its Capital Markets Day on September 18, 2025, the dual-listed energy company revealed an increase in its Q3 2025 dividend to 5.0 cents per share, higher than the 4.6 cents declared in the first two quarters. This sets a new base level for future payouts, with the company planning to return 40–50% of free cash flow to shareholders annually between 2026 and 2030.
The commitment is supported by stronger operating cash flow, which reached $486.9 million in the first half of 2025—almost 60% higher than its full-year 2024 figure. Over the last five years, Seplat has delivered $1.037 billion in free cash flow from $1.9 billion in total operating cash flow. However, profit attributable to shareholders declined to $23.6 million in H1 2025, equivalent to $0.04 (₦62.19) per share, down from $0.07 in the same period of 2024. Retained earnings also fell by 21% to ₦250.7 billion, compared with ₦319 billion in December 2024.
To sustain its dividend commitments, Seplat has set out a five-year roadmap that includes growing working interest production to around 200,000 boepd by 2030, generating $5–6 billion in operating cash flow, investing between $2.5 and $3 billion in capital expenditure across new wells and gas projects, lowering unit operating costs, and maintaining a balanced leverage profile.
Chief Executive Officer Roger Brown highlighted the company’s progress since its IPO, noting that reserves and production have quadrupled while more than $700 million has been paid out in dividends. He stressed that the 2030 strategy is built to expand production, boost cash flow, and enhance shareholder returns.
Seplat also confirmed ongoing discussions with the Nigerian National Petroleum Company Limited (NNPC) regarding a potential sale of a 10% interest in SEPNU. If concluded, Seplat’s stake would reduce to 30%, though it would remain the operator. The company assured that the dividend plan would remain unaffected.
Despite steady dividends and an upgraded outlook, Seplat’s share price has yet to reflect the momentum. The stock closed last week at ₦5,379.30, down year-to-date and unchanged since mid-August. Analysts suggest that as the company’s growth and dividend commitments take shape, the market may soon reassess its valuation.